You currently work for a retail store that carries basic household goods, some g

Question

You currently work for a retail store that carries basic household goods, some groceries, and health and beauty products. The store is located in the small community (approximately 5,000 total residents) in which you live and is looking to expand its operations in some way.

For this assignment, you are required to develop a major project proposal to be undertaken by your employer. You may decide to expand your product offerings or open an additional store in an adjacent community,

Project title

Project manager (yourself)

Problem definition or project rationale: Describe the problem or opportunity for improvement.

Goal definition: Describe the project goals.

Objective definition: Quantify the savings or benefits you expect from completing this project. How much will it cost (hours, materials, methods, equipment, etc.)? Estimate how long the project will take to complete.

Resources: Identify the resources necessary to complete the project.

Risk analysis: Identify the major risks associated with undertaking this project. How likely is it that these risks will occur? How will the project be impacted if these risks occur?

Explanation / Answer

Project title:

Expanding the operations to different areas

Project manager (yourself):

Name:

Problem definition or project rationale:

To expand the operations of the retail business to different areas and increase the profitability by increasing the size of revenue and business and by doing the effective utilisation of resources.

Goal definition:

1. Achieve annual sales of at least $5 million.

2. Participate in the improvement of at least 10 low income communities throughout the state.

3. Expand core product offerings by 10% within a 2-year time frame.

4. Expand size of stores by 10%.

5. Open at least one store in a neighboring state within a 5-year time frame.

Objective definition:

The project will take almost one year to complete itself.

The budget is estimated at about 4,200,000 USD and for a start-up fund, it will need 1,200,000 USD. For assets requiring cash and those that need additional cash to be raised, the total sum is 2,932,300 USD. Capital and liabilities including workers’ salaries will total 4,200,000 and this will make the balance sheet to stabilize at 4,200,000 USD being the estimated required capital to complete the whole project. Any culture change or process in the project will lead to a rise in value assets to balance up with demands in required changes.

Impact of not doing this project

Failure to realize this project will lead to additional assets being purchases being deprived of the opportunity to grow their business in a way different from how they have seen it before. There are some retail stores in the area but besides being few, they are poorly constructed and not well organized and run since many people have their minds focused big retail stores and failure of this project will lead to decrease in brand and customer loyalty for the original store itself and profitability of the original store may get impacted. The additional debts would be there for the company to pay off.

Resources:

Assets needing cash

Workers

Material for retail stores

Assets not needing cash

Workers

Holidays for workers

Raising additional cash

Stakeholders

Funds

Expenses

Workers

Wages , electricity and facilities

Capital

Administration

Finances

Liabilities

Bank

Loans and Credits

Risk analysis:

When an organization wants to venture across the borders then it should consider so many benefits and drawbacks in terms of the management, labor, communication, operations, legal issues and social responsibility. The risk are that the labor will feel uncomfortable in the new country and they will feel difficult to adjust in the new culture. It will also affect the communication process. The company has to face the greater competition. The smaller firm may lack the resources to compete internationally (Jones, 2010). Wall Mart and IBM are the example of the companies in the United States that are selling goods and services to countries overseas. By this Wall Mart is providing effective customer services by providing so many retail stores with many physical facilities.

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